Sixteen Larger Banks Are Ripe Takeover Targets: Bove

Some of the nation's larger banks also could be takeover targets as the sector remains undervalued, Rochdale Securities analyst Dick Bove said.

Bove has been pushing the M&A theme on belief that investors aren't convinced about bank earnings and are keeping share prices too low.

On Thursday, Bove compiled a list of 16 larger banks that he sees as takeover targets. Among the most well-known are Capital One Financial, SunTrust and Zions Bancorp.

"The increase in reported earnings is pushing the book value of the individual banking companies higher. The lack of enthusiasm for the source of the gain is pushing stocks lower," Bove wrote in a recent note to clients. "The net results is that the stocks now sell at significant discounts to book value and are clear acquisition targets.

"If Bank A buys Bank B at a discount to its stated book value, the acquisition is immediately accretive. The acquisition strategy becomes more compelling if both banks need acquisitions to grow core earnings. Bottom line there is growing value in these companies that will ultimately be recognized by the market."